Supply Chain and Exports Taskforce

The Supply Chain & Exports Taskforce (SC&E) brings together industry trade associations, government and regulators to highlight and strengthen the capability of the UK oil and gas service sector.

Working to support the economic recovery of the UK's oil and gas whilst supporting the Government's drive to net zero carbon by 2050, the taskforce is focused on doing all it can to enable industry to succeed through a series of targeted priority actions.

Member Organisations

Supply chain exports companies OGA Decom North Sea BEIS EEEGR EIC OGUK Scottish Enterprise UK Export Finance Department for International Trade NOF Subsea UK The Scottish Government ONE

Co-Chairs are currently John Pearson (Petrofac) and Stuart Payne (OGA)

Focus Areas (Q1 2021)

  • Stimulating Activity

    Aim:

    Ensure maximum possible work is undertaken in the UKCS to support operators and supply chain by encouraging licence commitments and creative ways of working to unlock activity.

    Work is being led by OGA with others, including OGUK leading targeted interventions

    To find our more click here

    Lookback – highlights from previous quarter:

    Well Plug & Abandonment – engagement was carried out with 17 operators who have indicated plans to P&A wells in 2021/2022. Details of these wells and additional wells have been updated onto Pathfinder with the total at May 2021 sitting at 316 wells

    Current Focus – priorities for the current quarter:

    • It was agreed at the April 2021 taskforce meeting that the work on stimulating activity will move from the Taskforce and become a business as usual activity led by the OGA Supply Chain team.

    Links

  • Visibility of Work

    Aim:

    Getting all available work (both in oil & gas and renewables) in front of the supply chain – quickly, simply and consistently.

    The SC&E taskforce is working to improve visibility of work through a combination of the OGA’s Pathfinder and other databases from trade associations including EIC, OGUK and Subsea UK.

    To find our more click here

    Work led by OGA, EIC, OGUK and Subsea UK

    Lookback – highlights from previous quarter:

    • Launch of Energy Pathfinder in May 2021. The new updated system includes improved functionality and access to a wider array of data. The site currently lists more than 130 projects from more than 30 UKCS operators.

     

    Current Focus – priorities for the current quarter

    • It was agreed at the April 2021 taskforce meeting that the work on Visibility of work will move from the Taskforce and become a business as usual activity led by the OGA Supply Chain team.

     

    Key Resources

    Pathfinder
    Energy Exports Conference
    Offshore Wind Projects Database

  • Simple, frictionless tender process

    Aim:

    Work to trial simple, fast and low-cost tender processes that deliver fair outcomes without delay and waste.

    The SC&E taskforce is targeting the tendering process – assessing why value is being lost and working to deliver targeted solutions to achieve fair outcomes in tendering.

    This complements work ongoing to drive collaboration and support for the OGUK supply chain principles as a key lever to this.

    Work led by OGA and OGUK

    To find our more click here

    Lookback – highlights from previous quarter:

    • Three industry workshops were held in Q1 2021 attended by 30 participants. The workshops generated 92 specific suggestions. Based on these a prioritisation of five core recommendations were presented for the taskforce to carry forward.
      • Refresh of LOGIC
      • Improved standardisation
      • Greater use of digital/technology in the tendering process
      • Prompt payment terms and adherence to the Supply Chain Principles
      • Reviewing the levels of contract risk used

    At the taskforce it was agreed that OGUK would carry forward the recommendations raised at the frictionless tendering workshops. OGUK are keen for industry support in implanting recommendations raised, if you are interested in getting involved in any workgroups going forward please contact Emily Taylor

  • 30-day payment terms

    Aim:

    Until end 2021, all invoices within supply chain, starting with Operator are paid within 30 days. Where invoices are disputed, only the disputed amount is withheld.

    The SC&E has pulled together a working group to develop a process to enrol and monitor operators to commit to 30-day payment terms in 2021.

    This complements work ongoing to drive collaboration and support for the OGUK supply chain principles as a key lever to this.

    Work led by the taskforce Co-Chairs and OGUK

    Lookback – highlights from previous quarter:

    • Continued outreach to increase the number of firms taking part
    • Collection and report of payment terms data on a quarterly basis

    Current Focus – priorities for the current quarter:

    • It was agreed at the April 2021 taskforce meeting that the work on 30-day payment terms will move from the Taskforce and become a business as usual activity led by OGUK